7 Things To Do When Cashflow Is Tight

7 Things To Do When Cashflow Is Tight

7 Practical Steps to Stabilise Your Business Cashflow 

Cashflow pressure is one of the most common challenges facing Australian small businesses. It doesn’t always mean your business is failing. Many profitable businesses experience cashflow strain due to timing gaps, growth phases, tax obligations or rising operating costs. The key is not to panic but to act strategically. Here are 7 practical steps to stabilise your business cashflow before pressure becomes a serious problem.

1. Get Clear on Your Actual Cash Position

Start with facts, not feelings. Clarity reduces stress and gives you control. It’s important to look closely at your numbers when thing feel tight.

  • What is your real bank balance?
  • What is due in the next 7, 14 and 30 days?
  • What invoices are outstanding?
  • What tax liabilities are coming up?

A simple 4–6 week snapshot can immediately highlight pressure points and help you to make plans.

2. Review Your Debtor List Immediately

Improving debtor management is one of the fastest ways to improve business cashflow. Outstanding invoices are often the biggest hidden source of trapped cash. Ask yourself:

  • Are invoices going out promptly?
  • Are payment terms too generous? Can they be altered now?
  • Are follow-up for payment consistent?

Small improvements here can unlock thousands in working capital. Consider:

  • Shortening payment terms
  • Requesting deposits upfront
  • Introducing progress payments
  • Automating reminder systems

3. Generate Faster Cash Through Smart Marketing

When cashflow is tight, don’t automatically cut marketing refine it. Start with the fastest source of revenue: people who already know you.

  • Reach out to your client database with an offer.
  • Contact past customers with a reengagement offer
  • How can you better use your customer contact points, SMS, email, face to face

Make sure you are using multiple channels to engage with your customer base. A simple rule of marketing is a person needs to hear your message 7 times before they take action. A simple, targeted SMS campaign (with open rates above 95%) can drive immediate bookings if structured with a clear, limited offer.

Rather than discounting everything, consider:

  • Bundled service offers
  • Prepayment incentives
  • Time-limited promotions
  • Reactivation campaigns
  • Moving clients onto recurring or retainer arrangements

You could even run a structured competition. Every entry becomes a new lead for future marketing. Marketing doesn’t have to be expensive to be effective. You message just needs to be out there working for you in the right way.

4. Renegotiate Supplier and Creditor Terms

Cashflow improves when you manage timing, not just revenue. Most suppliers prefer communication over silence. If you anticipate pressure:

  • Contact them early
  • Request structured payment plans
  • Extend payment terms temporarily

The same applies to the ATO. Proactive engagement is far more effective than avoidance.

5. Review Pricing and Margins

Many businesses undercharge without realising it. Inflation, wage increases and supplier costs may have eroded your margins over time. Ask:

  • Are your prices still commercially viable?
  • Are certain services or products underperforming?
  • Are you discounting too often?

Strategic pricing adjustments, even modest ones can significantly strengthen cashflow without increasing workload.

6. Cut Smart, Not Blind

Protect revenue-generating activities while trimming unnecessary costs. When cash feels tight, the instinct is often to slash expenses. Be careful. Cutting essential marketing, staff or growth activities can worsen long-term cashflow.

Instead:

  • Cancel unused subscriptions
  • Renegotiate utilities or software plans
  • Pause non-essential capital purchases

7. Improve How You Generate Cash (Without Discounting)

Avoid racing to the bottom on price. Instead:

  • Introduce service bundles
  • Offer premium tiers
  • Incentivise upfront payments
  • Reactivate dormant clients
  • Focus on higher-margin work

Sometimes the fastest path to stronger cashflow isn’t more clients it’s better structured revenue.

When Should You Call a Business Cashflow Consultant?

Cashflow pressure is normal in business. But certain signs suggest it’s time for structured support. If you recognise three or more of these signs, it could be time for a proactive plan and you should consider speaking with a Cashflow Consultant.

  • Is your ATO debt increasing?
  • Are you consistently worried about making payroll?
  • Is supplier pressure mounting?
  • Do you rely on personal credit cards to bridge gaps?
  • Are you avoiding checking your bank account?
  • Have you had declining business visibility over the last 60–90 days?
  • Does growth feel stressful instead of exciting?

A structured cashflow strategy can:

  • Restore confidence
  • Create breathing space
  • Protect profitability
  • Prevent crisis decisions
  • Rebuild stability and growth

At Cashflow Consultants, we work with business owners to build practical cashflow forecasts, negotiate structured plans, implement systems that stabilise finances and improve the brand and business leads.

Cashflow pressure doesn’t mean your business is broken.
It simply means it needs clarity, structure and strategy. We can help. Contact Cashflow Consultants today.